BANK OWNED PROPERTIES IN NORTHERN VIRGINIA are priced at market value. Many home buyers believe that the price on a foreclosure has something to do with "what the bank has in it". Not so. Bank owned properties are priced based on either an appraisal by a licensed appraiser or by a "Broker's Price Opinion". Either give the bank information about recently sold properties in in a similar location, similarly situated and similar size. These homes for sale in Northern Virginia should be and usually are priced below market for the neighborhoods the properties often are in need of at least cosmetic repair.
"AS IS" PROPERTIES. Further, since the bank usually makes no disclosure as to condition, makes no warranties for systems or appliances, structure, roof, etc., they are discounted from the average market for that area. What this means to home buyers is that foreclosures are a good buy. Of course, a home buyer must be careful and we always recommend a home inspection, even if the bank doesn't make repairs, if there are serious structural defects that you have not been able to identify prior to writing a contract, you can void the contract and you and your buyer's agent will find another property for you to consider.
BUYERS ARE LOOKING FOR BARGAINS. I received a call this a.m. from a prospective home buyer inquiring about foreclosures in Northern Virginia. There are quite a number of them. However, bank owned properties as a percentage of all homes actively listed for sale is not huge when compared to other real estate markets such as California, Arizona, Florida, Michigan and others. The caller started the conversation off with, "will the bank take 50% of the price in the computer?"
Now, I can't speak for banks, but I have access to SOLD statistics and study them regularly. I quickly advised the caller that, not only are properties in our area going for 50% of list price, they are often receiving multiple offers and selling for OVER LIST PRICE. I have too much respect for the agents in my network to expect them to show multiple properties to buyers who are making offers that are out of the range of reasonable.
Most bank owned properties for sale are in the lower price ranges and located in urban areas. However foreclosures are located throughout the area and in all locations and price ranges. YES, there are luxury bank owned homes for sale. Lately, home owner buyers are competing with serious investor buyers who write conventional contracts with no inspections and 20% down. It's hard to compete with investor buyers who know value, have cash and usually close quickly.
DON'T LIMIT YOUR SEARCH TO FORECLOSURES. Since the foreclosures are only a small percentage of our over all listing inventory, we include them in all buyer tours. If a suitable home for our buyer turns out to be a foreclosure, fine. If it is a short sale, fine. If it is a homeowner listings, fine. We search for the best home for our buyers. We do help buyers understand the process for different seller's and they are prepared to wait for bank owned properties and wait even longer for short sale listings. Bottom line. Find the best home for your needs.
You're going to wake up in it every day.
| VIRGINIA | AVERAGE LIST PRICE | # FORECLOSURE | # ACTIVE | AVERAGE LIST |
| COUNTY | FORECLOSURES | LISTINGS | LISTINGS ALL | PRICE ALL |
| Alexandria | $145,413 | 8 | 612 | $593,580 |
| Arlington | $251,617 | 6 | 831 | $701,731 |
| Culpeper | $157,829 | 14 | 410 | $380,410 |
| Fairfax | $304,891 | 179 | 4,373 | $729,660 |
| Fauquier | $216,839 | 16 | 481 | $697,416 |
| Loudoun | $370,088 | 65 | 1,707 | $622,264 |
| Prince William | $195,936 | 22 | 2,004 | $347,779 |
| Spotsylvania | $202,210 | 22 | 887 | $332,759 |
| Stafford | $222,922 | 27 | 803 | $328,547 |
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.
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| Arlington County |
Alexandria Old Town County |
Fairfax County | Fall's Church City |
Fauquier County |
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| King George County |
Loudoun County |
Spotsylvania County |
Stafford County |
Prince William County |
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